Exploring the Relevance of Employee Productivity-Linked Firm Performance Measures: An Empirical Study in India

Nikhat Afshan, Diganta Chakrabarti, M. S. Balaji

Research output: Journal PublicationArticlepeer-review

1 Citation (Scopus)

Abstract

The present study has been designed to examine the use of people-productivity-linked indices to measure firm performance. Revenue per employee (RPE) and profit per employee (PPE) were two selected indices used in this study to measure the organizational productivity across two industries. The results of the rank correlation of RPE and PPE with traditional financial indicators for eight years (2004-2005 to 2011-2012) showed significant associations. Implications of the results of this study in the present context highlighted the need for widespread application and acceptance of employee-linked productivity indices.

Original languageEnglish
Pages (from-to)24-37
Number of pages14
JournalJournal of Transnational Management
Volume19
Issue number1
DOIs
Publication statusPublished - Jan 2014
Externally publishedYes

Keywords

  • chemical industry
  • IT/ITES industry
  • productivity
  • profit per employee
  • rank correlation
  • return on assets
  • revenue per employee

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Management, Monitoring, Policy and Law

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